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The bid price of Rs 170 per share represents a premium of approximately 20% on the last share price. Fortis closing and 30% At the end of a bidding war that lasted several months and ended in offers of national and international players, IHH Healthcare, Malaysia, eventually won the victory and is preparing to take control of Fortis Healthcare with its injection offer of Rs 4,000 crore of capital by subscription of preferred shares. The Rival TPG-Manipal consortium's offer included a creme infusion of 2,100 rupees and the merger of Manipal Hospitals with Fortis Healthcare. The bid price of Rs 170 per share represents a premium of approximately 20% on the last closing price of Fortis and 30% on the unallocated price on July 2, 2018. It represents a multiple of 22.3x of the profit. of Fortis Healthcare before interest, taxes, depreciation and amortization for the 12 months ended March 31, 2018 and premiums of 19.5% and 15.3% on the closing price of [12juillet1965] on July 12, 2018, and the volume-weighted average price of 60 days, respectively. IHH will get a 31% stake and after the completion of the open bid for an additional 26% at the same price, it could see its stake rise to 57%. The open offer will still cost Rs 3,300 crore. Based on the offer price of Rs 170 per share, the implied valuation of shares for 100% of Fortis Healthcare is Rs 8,880 crore. Shares of Fortis Healthcare closed up 3.97% to Rs 147.80 each on BSE Friday
IHH's offer is the third that Fortis approved this year, with a previous offer shot by the shareholders. Previously, four actors – the Munjal-Burman consortium, IHH, Radiant Life Care and the Manipal-TPG consortium – were short-listed for the process. The company, however, only received two firm offers from the TPG-Manipal combination and the IHH. Fortis had put forward certain conditions for firm offers that included a minimum investment of 1,500 crore as a preferential allocation, a financing plan for the acquisition of RHT Health Trust, with a deadline of September 30, an exit plan at The transaction is expected to be completed within seven business days of receipt of the shareholders and the approval of the Competition Commission of India, which will be obtained at the same time as the approval of the company. ;shareholder. The IHH is present in nine countries through 49 hospitals and more than 10,000 authorized beds. Its managing director and CEO, Tan See Leng, said the acquisition would significantly increase the company's reach across the Indian subcontinent, thus complementing its existing capabilities in the high value quaternary segment. added. our national market of India in recent years and this acquisition is a natural progression in our expansion and our plans across India, "he said.Leng added:" With a clear and holistic strategy in place, we have developed a 100 day turnaround plan to stabilize Fortis. "
Leng said the company is ready to inject more funds into Fortis if necessary." Currently, we believe that Fortis would need about 5,800 to 6,000 rupees of funding. We put in Rs 4000 crore. We hope to refinance and obtain additional debt in the company and even if Fortis wishes, the IHH remains open to exploring options for raising additional capital in consultation with other shareholders, including by rights route, any other strategic solution involving "
In a media call, Fortis CEO Bhavdeep Singh said the company sees an opportunity to capitalize on the expertise of the company. IHH Healthcare and continue to develop the Fortis brand. "I think we have an opportunity from the point of view of the diagnosis.The SRL business is a very strong brand.It is an untapped thing that can be quite important.This also opens up a huge opportunity for business. a clinical point of view, ie research and clinical trials, which is very significant, "he said." It was a strong premium of 20% per compared to the current market price. It requires fewer approvals and, therefore, we can consume the transaction in a shorter time than the others. It also offers an exit opportunity for Fortis shareholders as it is an open offer, "he says.
Fortis currently operates a network of 34 hospitals across the country and abroad with a capacity of more than 2,600 physicians. and 13,200 support staff. President Ravi Rajgopal pointed out that it is unlikely that the management structure changes after the transaction. "Of course, when IHH comes as a majority investor, they can review the talent bank and try to supplement or increase it." But, in the current state of affairs, there is no need for it. There is no change to change the current structure, "he said.
IHH indicated that it intended to maintain Fortis Malar and its subsidiary Fortis Malar. "IHH also supports the plan announced by Fortis Healthcare to acquire RHT Health Trust, which is listed in Singapore and currently has a portfolio of 12 clinical facilities, four new clinical facilities and two operational hospitals", he added.
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